2023 -- H 5732

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LC001807

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- GIFT

CARD FRAUD

     Introduced By: Representatives Casimiro, Noret, and Morales

     Date Introduced: February 21, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL

REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 59

GIFT CARD FRAUD

     6-59-1. Definitions.

     As used in this chapter, the following words and phrases shall have the following meanings:

     (1) "Gift card" means a tangible device, whereon is embedded or encoded in an electronic

or other format, a value issued in exchange for payment, which promises to provide to the bearer

merchandise of equal value to the remaining balance of the device.

     (2) "Merchandise" means any objects, wares, goods, commodities, services, or anything

offered, directly or indirectly, to the public for sale.

     (3) "Retail mercantile establishment" means any place of business where merchandise is

exposed or offered for sale at retail to members of the consuming public.

     6-59-2. Posting of notice of gift card fraud at retail establishments.

     No person, firm, partnership, association, retail mercantile establishment or corporation

shall sell a gift card to a purchaser unless the seller displays a conspicuous notice at or near where

the gift card is displayed or at or near the physical location where the sale occurs, that:

     (1) Cautions the purchaser about prepaid card scams; and

     (2) Instructs the purchaser on what to do if they suspect they might be a potential victim of

such a scam.

     6-59-3. Employee training.

     Every retail mercantile establishment in this state that displays gift cards for sale shall train

employees on how to identify and respond to gift card fraud. The attorney general's office will

disseminate suggested training materials.

     6-59-4. Penalty for violation.

     Any person, firm, partnership, association, corporation or retail mercantile establishment

that violates the provisions of this chapter shall be subject to a civil penalty of five hundred dollars

($500), which may be collected and enforced by the Rhode Island department of attorney general,

consumer protection division. The superior court shall have jurisdiction of proceedings for the

enforcement of the penalty provided by this chapter.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- GIFT

CARD FRAUD

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     This act would require retail mercantile establishments in the state that display gift cards

for sale to post a notice warning of gift card fraud and instructions on what to do if a customer

suspects being a victim of fraud. The act would also require employees to be trained on how to

identify and respond to gift card fraud. The attorney general's office would be required to

disseminate suggested training materials.

     Any violations of this act would be subject to a civil penalty in the amount of five hundred

dollars ($500).

     This act would take effect upon passage.

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